Forex Technical Analysis for the Euro vs Dollar
Yesterday's relatively wide spread down bar on the euro vs dollar chart was significant for two reasons: firstly prices opened gapped down from Friday's close suggesting that the bearish sentiment which is currently evident may have some impetus. Secondly prices closed below the 40 day moving average which would tend to reinforce this view. However, this analysis has to be counterbalanced against the performance the equity markets which although have seen dramatic falls in China and an almost 2.5% fall in the S&P500 has not really translated as strongly as we would have expected into dollar strength but appears simply to expanded the euro vs dollar trading range to between USD1.38 and USD1.43. Whilst this expanded range will provide trading opportunities for swing traders and scalpers, longer term position trading may prove difficult and may have to wait until there is a clear and sustained breakout either side of the current range.